I got a quick question for you, I was just interested in somebody else's opinion on this matter. I need to let my CU know tomorrow if I am going to reaffirm a motorcycle I have with them. The motorcycle is valued at around $5000, probably more realistically $4000 to $4500 on Ebay. I owe the CU $2800 on it, but I also have a Signature loan with them for $1800. Of course the loans are cross-collateralized, so I can't reaffirm just the bike.
We had made up our minds that we were giving the bike back, but a representative from the CU showed up at our 341. She was very, very nice about it, she was there to see if we were going to reaffirm the bike or not. She offered to rewrite both the loans for 4 yrs. at 0% interest. That would make our payment somewhere around $96.00 for 4 years. She made her case with us by telling us that after the bk it would be very hard to find someone to bank with, and if we reaffirm the loans then they would be happy to continue to serve us. She said if they sell the bike and come up short, then we would not be allowed to do business with them. I asked her straight out about how it would affect us doing business with them after the bk. She said, according how bad it affects our credit scores, if our scores go really low, then they will continue to do business with us but we woulld have to pay higher interest rates.
It's not really the money, I think we could afford this after we get discharged from our bk. My wife really wants to reaffirm this so we can continue to do business with them, and I really don't care since I don't ride it very often at all.
So what do you think? Should I let the bike go back and take my chances with finding a bank to do business with? Or should I keep the bike and if I get into a financial crunch take my chances at selling it?
Does this really make good sense to keep the bike or did the polite lady from the CU do a good job on us?
One last question, we told the trustee that we were planning on reaffirming the motorcycle loan. Would it matter, or would he even know. I'm sure he doesn't have any idea about both loans being cross-collaterized.
Thanks
We had made up our minds that we were giving the bike back, but a representative from the CU showed up at our 341. She was very, very nice about it, she was there to see if we were going to reaffirm the bike or not. She offered to rewrite both the loans for 4 yrs. at 0% interest. That would make our payment somewhere around $96.00 for 4 years. She made her case with us by telling us that after the bk it would be very hard to find someone to bank with, and if we reaffirm the loans then they would be happy to continue to serve us. She said if they sell the bike and come up short, then we would not be allowed to do business with them. I asked her straight out about how it would affect us doing business with them after the bk. She said, according how bad it affects our credit scores, if our scores go really low, then they will continue to do business with us but we woulld have to pay higher interest rates.
It's not really the money, I think we could afford this after we get discharged from our bk. My wife really wants to reaffirm this so we can continue to do business with them, and I really don't care since I don't ride it very often at all.
So what do you think? Should I let the bike go back and take my chances with finding a bank to do business with? Or should I keep the bike and if I get into a financial crunch take my chances at selling it?
Does this really make good sense to keep the bike or did the polite lady from the CU do a good job on us?
One last question, we told the trustee that we were planning on reaffirming the motorcycle loan. Would it matter, or would he even know. I'm sure he doesn't have any idea about both loans being cross-collaterized.
Thanks
Comment